78 483
Assignments Done
Successfully Done
In September 2019

Answer to Question #25840 in Economics of Enterprise for Christie

Question #25840
Plush Pilots, Inc., has balance sheet equity of $6.6 million. At the same time, the income statement shows net income of $798,600. The company paid dividends of $403,293 and has 100,000 shares of stock outstanding. If the benchmark PE ratio is 30, what is the target stock price in one year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Target stock price $
Expert's answer
PE ratio = stock price/earnings per share, so Stock price = Dividends/shares outstanding*PE ratio
& Target stock price = $403,293/100,000*30 = $120.99

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

Privacy policy Terms and Conditions